FOMC leaves interest rates unchanged

The Federal Open Market Committee (FOMC) left interest rates unchanged at its meeting Wednesday. Federal Reserve Chair Jerome Powell said recent indicators suggest economic activity has continued to expand at a solid pace. The unemployment rate remains low, and labor market conditions remain solid while inflation remains somewhat elevated.

“The FOMC maintained rates at present levels in June, as was widely expected. Compared to the Committee’s previous projections in March, the June forecast anticipates modestly higher unemployment and inflation, while the median member expects the fed funds rate to be slightly above the previous forecast,” said America’s Credit Unions Chief Economist Curt Long. “This suggests that the Committee is prioritizing inflation risks and less willing to risk cutting rates before it is warranted. The economic climate is uncertain and recession risks remain elevated. But credit unions will continue to support local communities in good times and bad with low-cost financial services and support for households experiencing economic distress.”